Shah Rukh Khan Starrer Jawan May Take Box Office By Tsunami; Time To Buy PVR Shares?

The Badshah of Bollywood, Shah Rukh Khan aka SRK is ready to sweep cinema lovers off their feet with his new movie, Jawan which will be hitting movie theatres on September 7. SRK will be showing his chemistry alongside Nayanthara, the only South Indian actress to be featured in the Forbes India list. The advance booking trends are encouraging in Jawan, and the SRK- Nayanthara starrer movie is expected to take the box office by a tsunami. If that is the case, multiplexes stocks are in a sweeter spot to profit from Jawan. Hence, Jinesh Joshi - Research Analyst, and Prabhudas Lilladher recommend buying the share price of PVR.

On Wednesday, Jinesh Joshi - Research Analyst, Prabhudas Lilladher Pvt Ltd said, "SRK starrer Jawan is set to release tomorrow and advance booking trends are encouraging. As of Sep 5, the gross advance collection has surpassed Rs25crs with ~910K tickets already being sold."

Also, he added that a cursory look at BMS app reveals ~16K tickets have been booked in the last 1 hour. Further, citing media reports, Joshi said, the opening day collection may well be in the band of Rs60-80 crore. If this fructifies, opening weekend collection can well be in the band of Rs200-250 crore (total of 4 days as the movie is releasing on Thursday).

The storyline of the movie revolves around a man (played by SRK) who is driven by a personal vendetta to rectify the wrongs in society, alongside, keeping a promise that he made years ago. Produced by Gauri Khan, Jawan is also starring renowned names like Vijay Sethupathi, Sanya Malhotra, Priyamani, Yogi Babu, and Sunil Grover. Atlee Kumar is the director of the film. The distribution partners are -- Yash Raj Films, SVF, Red Giant Movies, Pen Studios, Sri Venkateswara Creations.

Further, Joshi said,"Pertinent to note that SRK's last movie Pathaan had netted ~Rs543crs and Jawan has a better pan-India appeal given it has stars from South like Vijay Sethupati and Nayanthara and thus it would be interesting to see where the life-time collections actually settle."

After Jawan, Joshi also said that "SRK will be seen next in Dunki (a Raj Kumar Hirani Film) which is expected to release in Christmas 2023."

Hence, Joshi said, "Retain positive bias on multiplexes with a BUY on PVR (TP Rs1,797 - most likely to be revised upwards)."

Earlier, on September 1, Joshi also in another note revealed that PVR-Inox celebrated the highest box office month of all time. He said, PVR-Inox reported footfalls of 1.9 crore in August 2023 with GBOC of ~Rs532 crore. This is the highest-ever monthly footfall and GBOC figure for the cinema chain.

"In the post-pandemic era, 1QFY23 was the best quarter for PVR-Inox with proforma (assuming consolidation) footfalls of 4.3crs. Now, if footfalls in Aug-23 itself were 1.9crs and on a conservative basis if we assume the same to be at ~1crs (~47% lower) in July and Sep (Jawan to set to release on 07th Sep and Salaar on 28th Sep), the total count for 2QFY24 would stand at ~3.9crs (9% lower than 1QFY23). Thus, we believe 2QFY24 might well turn out to be an exceptionally strong quarter. Retain positive bias on multiplexes with a BUY on PVR."

On Wednesday, at the time of writing, PVR shares traded at Rs 1819.60 apiece, up by 1.3% on BSE. The stock has gained by 2.2% so far in the day by hitting an intraday high of Rs 1838 apiece.

In a six-months period, PVR shares have gained over 15.2% on BSE, however, year-to-date, the upside is of a single-digit 5.3%.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.